Year in review: The biggest spy-related stories of 2018, part III

Year in ReviewSince 2008, when we launched intelNews, it has been our end-of-year tradition to take a look back and highlight what we believe were the most important intelligence-related stories of the past 12 months. In anticipation of what 2019 may bring in this highly unpredictable field, we present you with our selection of the top spy stories of 2018. They are listed below in reverse order of significance. This is part three in a three-part series; part one is available here. Part two is available here.

04. China flexes its HUMINT muscle. Much has been written about China’s cyber-espionage capabilities. These are undoubtedly formidable and growing. But in 2018 Beijing also showed that it is becoming increasingly active in human intelligence —namely the use of human spies to clandestinely collect information. In January, the FBI arrested Jerry Chun Shing Lee, 53, who served in the CIA from 1994 to 2007, accusing him of having received “hundreds of thousands of dollars in cash” by China in exchange for carrying out espionage. In May, France confirmed the arrests of two French intelligence officers who are accused of spying for the Chinese government. The suspects are current and former officers in the General Directorate of External Security (DGSE), France’s primary external intelligence agency. At least one of the two suspects was reportedly stationed at the embassy of France in Beijing when French counterintelligence became aware of his alleged espionage. And in October the DGSE, along with France’s domestic security agency, the DGSI, warned of an “unprecedented threat” to security after nearly 4,000 leading French civil servants, scientists and senior executives were found to have been approached by Chinese spies using the popular social media network LinkedIn.

03. The Islamic State is quickly evolving into a clandestine organization. Earlier this month, US President Donald Trump announced that the Islamic State, also known as the Islamic State of Iraq and Syria (ISIS) had been defeated and that the he would be removing all US forces from Syria. Virtually no Western intelligence agency agrees with the view that ISIS has been defeated. In August, the US Department of Defense reported to Congress that ISIS retains over 30,000 armed fighters in Iraq and Syria. Another report by the United Nations’ Analytical Support and Sanctions Monitoring Team warned that ISIS is morphing into a “covert version” of its former self and that its organizational core remains mostly intact in both Iraq and Syria. Earlier this month, the US Pentagon warned again that ISIS is swiftly returning to its insurgent roots, as observers in Iraq and Syria cautioned that the group is witnessing a revival. What is more, recent analysis by the Pulitzer Center on Crisis Reporting says that a campaign of revenge by Iraq’s Shiite-dominated government against Sunni Arabs in regions once controlled by ISIS is aiding Islamists and fueling another pro-ISIS rebellion in the country. Overall, there are today four times as many Sunni Islamist militants in the world than on September 11, 2001, according to a study published in November by the bipartisan Center for Strategic and International Studies in Washington.

02. Nearly 150 Russian diplomats were expelled by 24 countries over Skripal poisoning. Relations between Russia and much of the West reached a new low this year, with the expulsion of nearly 150 Russian diplomats from two dozen countries around the world. The unprecedented expulsions came in response to Britain’s worldwide diplomatic effort to condemn Russia for the attempted assassination of former Russian spy Sergei Skripal in Salisbury, England, which was allegedly carried out by Russian government agents. They were publicized with a series of coordinated announcements that were issued from nearly every European capital, as well as from Washington, Ottawa and Canberra. By the early hours of March 13, the number of Russian diplomatic expulsions had reached 118 —not counting the 23 Russian “undeclared intelligence officers” that had been expelled from Britain the previous week. As intelNews explained at the time, the expulsions sent a strong political message to Moscow and did disrupt the Kremlin’s intelligence activities in the West. But they are expected to have a limited effect on Russia’s ability to carry out intelligence operations on foreign soil of the kind that allegedly targeted Skripal.

01. CIA suffered ‘catastrophic’ compromise of its spy communication system. That was alleged in a major report published by Yahoo News, which cited “conversations with eleven former US intelligence and government officials directly familiar with the matter”. The report described the compromise of an Internet-based covert platform used by the CIA to facilitate the clandestine communication between CIA case officers and their sources —known as agents or spies— around the world. It reportedly caused a “catastrophic” compromise of the system that the CIA uses to communicate with spies, which caused the death of “dozens of people around the world” according to sources. What is more, the report suggested that the CIA was warned about the potential shortcomings of its online communication system before 2009, when the first penetrations began to occur. In response to the compromise, the CIA has reportedly modified, and at times completely abandoned, its online communication system. However, the implications of the system’s compromise continue to “unwind worldwide” and the CIA is “still dealing with the fallout”, according to Yahoo News. The effects on the agency’s operational work are likely to persist for years, it said.

This is part three in a three-part series; part one is available here. Part two is available here.

Authors: Joseph Fitsanakis and Ian Allen | Date: 31 December 2018 | Permalink

Advertisements

Year in review: The biggest spy-related stories of 2018, part II

End of Year ReviewSince 2008, when we launched intelNews, it has been our end-of-year tradition to take a look back and highlight what we believe were the most important intelligence-related stories of the past 12 months. In anticipation of what 2019 may bring in this highly unpredictable field, we present you with our selection of the top spy stories of 2018. They are listed below in reverse order of significance. This is part two in a three-part series; part one is available here. Part three is here.

07. Russia accused of using ISIS hacker group as cover to launch cyber attacks. The group calling itself Cyber Caliphate first appeared in early 2014, purporting to operate as the online wing of the Islamic State of Iraq and Syria (ISIS), which later renamed itself Islamic State. Today the Cyber Caliphate boasts a virtual army of hackers from dozens of countries, who are ostensibly operating as the online arm of the Islamic State. Their known activities include a strong and often concentrated social-media presence, as well as computer hacking, primarily in the form of cyber-espionage and cyber-sabotage. But a report issued in October by Britain’s National Cyber Security Centre described the Cyber Caliphate and other similar hacker groups as “flags of convenience” for the Kremlin. The report echoed the conclusion of a German government report that was leaked to the media in June of 2016, which argued that the Cyber Caliphate is a fictitious front group created by Russia.

06. Outgoing CIA director said US killed ‘couple of hundred’ Russians in Syria. Sources from the US Pentagon, said that the armed confrontation took place on February 7, 2018, when a 500-strong Syrian government force, which allegedly included hundreds of contracted Russian soldiers crossed the Euphrates River and entered Kurdish-controlled territory in Syria’s northeastern Deir al-Zour region. US-supported Kurdish forces in the area, which include embedded American troops, responded with artillery fire, while US military aircraft also launched strikes on the Syrian government forces. The latter withdrew across the Euphrates after suffering heavy losses. The US side is said to have estimated at the time that over 100 attackers had been left dead, with another 200-300 injured. The toll later rose to nearly 400 dead. At a press conference held soon after the armed clash, US Secretary of Defense James Mattis refused to discuss the matter. But on April 12, the outgoing director of the CIA, Mike Pompeo, appeared to acknowledge that US troops killed hundreds of Russians in Deir al-Zour. He was speaking before a committee of the US Senate during a hearing pertaining to his nomination to serve as the next US secretary of state. Pompeo said that: “in Syria, now, a handful of weeks ago the Russians met their match. A couple of hundred Russians were killed”.

05. Iran tried to bomb conference in France with over 30 senior US officials present. On June 30, members of Belgium’s Special Forces Group arrested a married Belgian couple of Iranian descent in Brussels. The couple were found to be carrying explosives and a detonator. On the following day, German police arrested an Iranian diplomat stationed in Iran’s embassy in Vienna, Austria. And on the same day, a fourth person was arrested by authorities in France, reportedly in connection with the three other arrests. All four individuals appear to have been charged with a foiled plot to bomb the annual conference of the National Council of Resistance of Iran (NCRI) that took place on June 30 in Paris. The NCRI is led by Mujahedin-e Khalq, a militant group that was designated as a terrorist group by the European Union and the United States until 2009 and 2012 respectively. But it has since been reinstated in both Brussels and Washington, reportedly because it provides the West with a vehicle to subvert the Iranian government. NCRI conference participants included over 30 senior US officials, including US President Donald Trump’s personal lawyer, Rudy Giuliani, who addressed the meeting. Stephen Harper, Canada’s former prime minister, also spoke at the conference.

This is part two in a three-part series; part one is available here. Part three is here.

Authors: Joseph Fitsanakis and Ian Allen | Date: 28 December 2018 | Permalink

Year in review: The biggest spy-related stories of 2018, part I

End of Year ReviewSince 2008, when we launched intelNews, it has been our end-of-year tradition to take a look back and highlight what we believe were the most important intelligence-related stories of the past 12 months. In anticipation of what 2019 may bring in this highly unpredictable field, we present you with our selection of the top spy stories of 2018. They are listed below in reverse order of significance. This is part one in a three-part series; Part two is available here. Part three is here.

10. Taiwan admits that Chinese general Liu Liankun was one of its spies. In April, the government of Taiwan acknowledged publicly for the first time that Liu Liankun, a Chinese major general who was executed by Beijing in 1999 for espionage, was indeed one of its spies. Liu, who headed the Department of General Logistics of the Chinese People’s Liberation Army, was accused by the Chinese government of having spied for Taiwan for five years, in exchange for nearly $2 million in bribes. He was eventually executed by lethal injection in a Beijing prison. He was 58. At the time of his conviction, Liu was the most senior Chinese military officer to have ever been convicted of spying for Taiwan. The island nation denied that Liu spied on its behalf and refused to acknowledge that it had any role in his espionage activities. But in April Taiwan’s Military Information Bureau unveiled its renovated memorial at its headquarters in Taipei City. Among the plaques, visitors to the memorial saw one dedicated to Liu for the first time.

09. Israel charges former cabinet minister with spying for Iran. In 1992, when he was 35, Gonen Segev, was elected as one of the Knesset’s youngest members, representing the conservative Tzomet party. Initially an opposition Knesset member, Segev eventually left Tzomet and joined a governing coalition with the Labor Party, in which he served as Minister of Energy and Infrastructure. In 2004, after exiting politics, Segev was arrested on a flight from Holland while reportedly trying to smuggle several thousand ecstasy pills into Israel. He was jailed for five years but was released from prison in 2007, after a commendation for good conduct. Shortly after his release, Segev moved to the Nigerian city of Abuja, where he practiced medicine. It was there, the Shin Bet claims, that he was recruited by Iranian intelligence. He was reportedly detained in May of this year during a trip to Equatorial Guinea, following a request by Israeli officials. He was then extradited to Israel and arrested as soon as he arrived in Tel Aviv. Israel’s Shin Bet security service said that Segev admitted being in regular contact with Iranian intelligence agents in Nigeria, where he lived after 2007, and other countries around the world. He also said that he was given a fake passport by his handlers, which he used to visit Iran on two separate occasions in order to hold secret meetings with Iranian intelligence officers.

08. European Union agrees to establish joint intelligence training school. In November, 25 members of the European Union agreed to establish a joint intelligence training academy, a move interpreted by some as a concrete effort to deepen inter-European security cooperation following Brexit. The announcement came just hours after leading EU heads of state spoke in favor of establishing a joint EU defense force. Calls for tighter cooperation between EU members in the areas of defense and security have been issued for decades. But the upcoming departure of Britain from the EU —popularly known as Brexit— appears to have prompted Germany and France to propose deeper integration as a response to the rise of anti-EU sentiment across the continent. The new intelligence academy initiative will be led by Greece —an EU member since 1981— and will be headquartered in Cyprus, which joined the EU in 2004. It will work in cooperation with the individual intelligence agencies of the 25 co-signatory states, along with NATO and with other regional security bodies.

This is part one in a three-part series; Part two is available here. Part three is here.

Authors: Joseph Fitsanakis and Ian Allen | Date: 27 December 2018 | Permalink

Year in review: The biggest spy-related stories of 2017, part III

Year in ReviewSince 2008, when we launched intelNews, it has been our end-of-year tradition to take a look back and highlight what we see as the most important intelligence-related stories of the past 12 months. In anticipation of what 2018 may bring in this highly volatile field, we give you our selection of the top spy stories of 2017. They are listed below in reverse order of significance. This is the last part in a three-part series. Part one is available here. Part two is available here.

Mohammed bin Salman04. Unprecedented security changes are taking place in Saudi Arabia. Analysts agree that the Kingdom of Saudi Arabia is undergoing its most important political changes in generations. On November 4, 2017, nearly 50 senior Saudi officials, including at least 11 princes, some of them among the world’s wealthiest people, were suddenly fired or arrested. A royal decree issued on that same evening said that the arrests were carried out by a new “anti-corruption committee” led by Crown Prince Mohammed bin Salman, the king’s 32-year-old son, who is first in line to the throne. The king and his son appear to be in the process of removing their last remaining critics from the ranks of the Kingdom’s security services, which they now control almost completely. Earlier in the year, the BBC alleged that Saudi security services were secretly abducting Saudi dissidents from abroad and jailing them in Saudi Arabia. Also in November, Saudi Arabia was seen to be behind a failed attempt by Lebanon’s Prime Minister Saad al-Hariri —a dual Lebanese-Saudi citizen— to resign while on a trip to Saudi Arabia. There were allegations that Hariri was under arrest by the Saudis, who objected to the presence of Hezbollah members in his cabinet. But Hariri later returned to Lebanon and rescinded his resignation.

03. Extraordinary transformation of the intelligence landscape in South Korea. Developments in North Korea have been at the forefront of security reporting in recent months. But reports from the Korean Peninsula have largely ignored the dramatic changes Moon Jae-intaking place in the intelligence infrastructure of South Korea, which are arguably as important as developments north of the 38th parallel. In June, the new center-left government of President Moon Jae-in banned the powerful National Intelligence Service (NIS) from engaging in domestic intelligence gathering. The move came after a lengthy investigation concluded that the NIS interfered in the 2012 presidential elections and tried to alter the outcome in favor of the conservative candidate, Park Geun-hye, using 30 dedicated teams of officers for that purpose. In November, three former NIS directors were charged with secretly diverting funds from the agency’s clandestine budget to aid Park, who has since been impeached and is now facing a lengthy prison sentence.

02. Turkey’s fallout with the West is affecting spy relations. Turkey has been a NATO member since 1952. However, rising tensions in the country’s domestic political scene are negatively affecting Ankara’s relations with its Western allies, particularly with Germany and the United States. Last month, Turkey issued an arrest warrant for Graham Fuller, an 80-year-old former analyst in the CIA, who Ankara says helped orchestrate the failed July 2016 military coup against the government of President Recep Tayyip Erdoğan. Washington flatly denies these allegations. In May, the Turkish Minister of Foreign Affairs Mevlüt Çavuşoğlu accused “the secret services of [Western] countries” of “using journalists and also bloggers [as spies] in Turkey”. Earlier in the year, a German report claimed that the Turkish state had asked its diplomats stationed all over Europe to spy on Turkish expatriate communities there, in order t to identify those opposed to the government of President Erdoğan. In some cases, Turkish spies have asked their Western European counterparts to help them monitor the activities Turkish expatriates, but such requests have been turned down. Nevertheless, there is increasing unease in Western Europe as Turkey intensifies its unilateral intelligence activities aimed at monitoring political dissent among Turkish communities abroad.

01. With America divided, Russian spies make dramatic post-Cold War comeback. The collapse of the Soviet Union was a traumatic experience for the once all-powerful Russian spy agencies. But, if CIA and FBI assessments are correct, the bitterly divisive state of American politics gave Russian spooks a chance for a dramatic comeback. Using a mixture of human and online intelligence operations, Russian spies helped drive a wedge between the White House and the US Intelligence Community. American intelligence agencies are tasked with providing information to Putin and Trumpassist policy-makers, including the president. So when the CIA and the FBI conclude that the Russian government launched an extensive and sophisticated campaign to undermine the 2016 US presidential election, one expects the president to take that advisement under serious consideration. However, the US leader has openly dismissed the conclusions of his own Intelligence Community and has publicly stated that he believes President Vladimir Putin’s assurances that his country did not meddle in the US election.

What we have here, therefore, is a US president who sees the Kremlin as more trustworthy than his own Intelligence Community. This is a remarkable, unprecedented state of affairs in Washington, so much so that some CIA officials have reportedly questioned whether it is safe for them to share information about Russia to President Trump. Throughout that time, the FBI has been conducting an extensive counterintelligence investigation into alleged ties between the president’s campaign team and the Kremlin. As intelNews has noted before, the FBI probe adds yet another layer of complexity in an already intricate affair, from which the country’s institutions will find it difficult to recover for years to come, regardless of the outcome of the investigation. The state of Russian politics may be uncertain, and the country’s economy in bad shape. But Russian spooks can look back to 2017 as the year in which they made an unexpected comeback, scoring a dramatic victory against their decades-old rival.

This is the last part in a three-part series. Part one is available here. Part two is available here.

Authors: Joseph Fitsanakis  and Ian Allen | Date: 03 January 2018 | Permalink

Year in review: The biggest spy-related stories of 2017, part II

End of Year ReviewSince 2008, when we launched intelNews, it has been our end-of-year tradition to take a look back and highlight what we see as the most important intelligence-related stories of the past 12 months. In anticipation of what 2018 may bring in this highly volatile field, we give you our selection of the top spy stories of 2017. They are listed below in reverse order of significance. This is part two in a three-part series. Part one is available here. Part three will be posted tomorrow.

07. 2017 was marked by high-profile assassinations and suspicious deaths. There was no shortage of assassinations, assassination attempts, and suspicious deaths in 2017. In January, Brazilian authorities launched an investigation into a suspicious plane crash that killed Supreme Court judge Teori Zavascki, who died while leading the largest corruption probe in the nation’s history, involving government officials and two giant companies. In February, Vladimir Kara-Murza, a leading member of Open Russia, a think tank founded by Russian oligarchs opposed to Russian president Vladimir Putin, nearly died Kim Jong-namas a result of “acute poisoning from an undefined substance”, according to his doctors. Also in February, Kim Jong-nam, half-brother of North Korean Supreme Leader Kim Jong-un, was killed in an audacious attack in Malaysia by two female assassins, who used a poisonous substance to murder him. Some alleged that Kim, who was a critic of his brother’s policies in the DPRK, had made contact with US intelligence prior to his assassination. In March, the Israeli military alleged that Amine Badreddine, 55, an explosives expert and senior military commander in the military wing of Hezbollah, was murdered by his own people while fighting in Syria. Allegedly the Iranians wanted him killed because he disputed the authority of Major General Qasem Soleimani, commander of Iran’s Revolutionary Guard Corps, who is often credited with having saved the Syrian government from demise during the Syrian Civil War. In October, Malta’s best known investigative journalist, Daphne Caruana Galizia, whose reporting about offshore tax evasion revealed in the Panama papers prompted a major political crisis in Malta, was killed when the rented Peugeot 108 car she was driving exploded near her home in central Malta. Eyewitnesses said that the explosion was so powerful that it tore apart the vehicle and was heard from several miles away. Finally, in November, Zhang Yang, one of the highest-profile generals in the Chinese People’s Liberation Army, committed suicide according to Chinese state media. Zhang Yang had seen a meteoric rise to power, but unceremoniously fell from grace as a result of President Xi Jinping’s nationwide campaign against corruption.

06. CIA ends its support for opposition rebels in Syria. In February, the White House instructed the CIA to halt military support to armed groups that are associated with the Free Syrian Army (FSA), a group opposed to Syrian President Bashar al-Assad. The move ended a policy that begun under US President Donald Trump’s predecessor, Barack Obama. Some analysts warned that the decision by the White House to terminate US Milo Dukanovicsupport for the rebels could backfire by causing the suddenly unemployed fighters to join jihadist organizations. In August, there were reports that US troops exchanged fire with former FSA rebels in Manbij, a Syrian city located a few miles from the Turkish border.

05. Britain accused Russia of trying to kill Montenegro prime minister. In late 2016, authorities in the former Yugoslav Republic of Montenegro alleged that “nationalists from Russia and Serbia” were behind a failed plot to kill the country’s prime minister,  Milo Dukanović, and spark a pro-Russian coup in the country. Remarkably, in March of 2017, British Foreign Secretary Boris Johnson said in an interview that Russian spies may have indeed orchestrated the failed attempt to kill Dukanović, as part of a broader plan to prevent the former Yugoslav republic from entering NATO. It is not every day that a senior cabinet official of a NATO member-state accuses the Kremlin of carrying out an assassination attempt against a European head of state.

This is part two in a three-part series. Part one is available here. Part three is available here.

Authors: Joseph Fitsanakis  and Ian Allen | Date: 02 January 2018 | Permalink

Year in review: The biggest spy-related stories of 2017, part I

End of Year ReviewSince 2008, when we launched intelNews, it has been our end-of-year tradition to take a look back and highlight what we see as the most important intelligence-related stories of the past 12 months. In anticipation of what 2018 may bring in this highly volatile field, we give you our selection of the top spy stories of 2017. They are listed below in reverse order of significance. This is part one in a three-part series; parts two and three will be posted on Tuesday and Wednesday of this week.

khalifa haftar10. Saudis, Israelis, are illegally funding a CIA-backed warlord in Libya. The strongest faction in the ongoing Libyan Civil War is the eastern-based Tobruk-led Government, which is affiliated with the Libyan National Army (LNA). The commander of the LNA is Field Marshal Khalifa Haftar, an old adversary of Colonel Gaddafi, who lived in the United States under CIA protection for several decades before returning to Libya in 2011 to launch his military campaign. American legal experts, including a former special counsel to the United States Department of Defense and a Harvard University law professor, accuse Haftar of ordering his troops to commit war crimes. But there is much evidence to suggest that Israeli, Saudi and Emirati intelligence agencies are illegally breaking a United Nations-imposed arms embargo on Libya and arming Haftar with advanced weaponry.

09. Why are American, Canadian diplomats in Havana going deaf? In 2015, relations between Cuba and the United States experienced an unprecedented rekindling, which culminated with the reopening of the US embassy in Havana after more than half a century. But in the past year, US authorities became enraged with the Cuban government after American diplomats reportedly suffered hearing loss and brain trauma as a result of a mysterious so-called “covert sonic weapon” that was directed against the American embassy. The US State Department blamed Cuba for the incident, but some believe that US embassy Cubathe alleged device may have been deployed by an intelligence service of a third country —possibly Russia— without the knowledge of the Cuban authorities. In October, the White House expelled 15 Cuban diplomats from the US in response to the incident. But the question of what harmed the health of at least 20 employees at the US embassy in Havana remains largely unanswered.

08. Role of spies in German-Swiss economic war revealed. In the wake of the Panama and Paradise leaks, offshore tax havens have faced intensifying worldwide calls for the introduction of transparency and accountability safeguards. Predictably, they are resisting. In April of 2017, German authorities announced the arrest of an employee of the Swiss Federal Intelligence Service (NDB) in Frankfurt. It appears that the Swiss man, identified only as Daniel M., was monitoring the activities of German tax-fraud investigators who have been trying for years to prevent German citizens from having secret bank accounts abroad. It is believed that he was arrested while monitoring German efforts to approach potential whistleblowers working in the Swiss banking sector. A few months after Daniel M.’s arrest, Germany announced an unprecedented investigation into three more officers of the NDB, on suspicion that they spied on German tax investigators who were probing the activities of Swiss banks.

This is part one in a three-part series. Part two is available here. Part three is available here.

Authors: Joseph Fitsanakis  and Ian Allen | Date: 01 January 2018 | Permalink

Year in review: The 10 biggest spy-related stories of 2016, part II

End of Year ReviewSince 2008, when we launched intelNews, it has been our end-of-the-year tradition to take a look back and highlight what we think were the most important intelligence-related stories of the past 12 months. In anticipation of what 2017 may bring in this highly volatile field, we present you with our selection of the top spy stories of 2016. They are listed below in reverse order of significance. This is part two in a two-part series; you can access part one here.

5. Turkey’s intelligence agency wins the 2016 ‘clueless’ award. It seems everyone predicted the July 15 coup in Turkey, except its spy agency. Unlike countless political analysts in Turkey and abroad, who have been warning about a possible coup as early as October 2015, Turkey’s National Intelligence Organization (MİT) was caught in the dark. So unprepared was the agency, that it was unable to defend its headquarters in Ankara from an attack on the morning of July 16 by military helicopters. Meanwhile, dozens of Turkish nationals with diplomatic passports have been applying for political asylum in Germany and elsewhere since the coup. How many of those are MİT personnel, one wonders?

4. Panama papers leak shows immense extent of global financial crime. This year saw the unauthorized release of the Panama Papers, 11.5 million leaked documents that represent history’s largest leak. The documents were leaked form the vaults of the secretive Panamanian law firm Mossack Fonseca, and reveal secret information relating to over 200,000 offshore entities. This website opined at the time that the Panama Papers reveal the enormous extent of tax evasion and money laundering on a worldwide scale, which now directly threatens the very survival of the postwar welfare state. National intelligence agencies must begin to view offshore tax evasion as an existential threat to the security of organized government and need to augment their economic role as part of their overall mission to protect and secure law-abiding citizens.

3. Nuclear power plant computers found to be infected with viruses. In April, the computers of Gundremmingen, a nuclear power plant in southern Germany, were found to be infected with computer viruses that are designed to steal files and provide attackers with remote control of the system. The power plant is located in Germany’s southern district of Günzburg, about 75 miles northwest of the city of Munich. It is owned and operated by RWE AG, Germany’s second-largest electricity producer. RWE AG insisted that the malware did not pose a threat to the nuclear power plant’s computer systems, because the facility is not connected to the Internet. But there was no explanation of how the viruses found their way into the nuclear power plant’s systems in the first place.

2. German intelligence accuses Russia of pretending to be ISIS online. In June, a German intelligence report alleged that the so-called ‘Cyber Caliphate’, the online hacker wing of the Islamic State, is in fact a Russian front, ingeniously conceived to permit Moscow to hack Western targets without retaliation. The Cyber Caliphate first appeared in early 2014, purporting to operate as the online wing of ISIS. Now, however, a German intelligence report claims that the Cyber Caliphate is in fact a project of APT28 (also known as ‘Pawn Storm’), a notorious Russian hacking collective with close ties to Russian intelligence. The findings of the German intelligence report echo previous assessments by French and American authorities.

1. Intelligence features heavily in domestic US politics. Many, including this website, saw last week’s expulsion of 35 Russian diplomats by US President Barack Obama as a move directed “more towoard domestic American politics than foreign policy”. The expulsion aimed to expose Moscow’s alleged campaign of interference in the 2016 US Presidential elections. But another of its goals was to force president-elect Donald Trump, seen widely as a Russo-file, to take sides. Russian President Vladimir Putin responded by saying Moscow “reserves the right” to retaliate, but would not do so at this point. The Russian response was unexpected and highly uncharacteristic, an important reminder of the uncharted waters that US politics –and US-Russian relations– have entered in 2016. Still, it is remarkable to see the president-elect of the US effectively side with the Kremlin and not with his own country’s Intelligence Community. If nothing more, 2017 promises to be exceedingly interesting from an intelligence point of view.

This is part two in a two-part series; you can access part I here.

Author: Joseph Fitsanakis and Ian Allen | Date: 30 December 2016 | Permalink